{"id":250,"date":"2023-04-11T15:57:43","date_gmt":"2023-04-11T08:57:43","guid":{"rendered":"http:\/\/example.com\/?p=250"},"modified":"2023-04-11T15:57:43","modified_gmt":"2023-04-11T08:57:43","slug":"what-is-a-calendar-spread","status":"publish","type":"post","link":"https:\/\/w2.geleleger.nl\/rgnbs-what-is-a-calendar-spread-kmzye\/","title":{"rendered":"What Is A Calendar Spread?"},"content":{"rendered":"<div class=\"387480d42754320bb6f0e83bf7886d44\" data-index=\"1\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script type=\"text\/javascript\">\r\n\tatOptions = {\r\n\t\t'key' : '4a1f1119f949a4af74d56b8a3af8b867',\r\n\t\t'format' : 'iframe',\r\n\t\t'height' : 250,\r\n\t\t'width' : 300,\r\n\t\t'params' : {}\r\n\t};\r\n\tdocument.write('<scr' + 'ipt type=\"text\/javascript\" src=\"http' + (location.protocol === 'https:' ? 's' : '') + ':\/\/bleedingofficecontagion.com\/4a1f1119f949a4af74d56b8a3af8b867\/invoke.js\"><\/scr' + 'ipt>');\r\n<\/script>\n<\/div>\n<article>\n<figure><noscript><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/tse1.mm.bing.net\/th?q=what%20is%20a%20calendar%20spread\" alt=\"Pin on Option Trading Strategies\" width=\"640\" height=\"360\" \/><\/noscript><img decoding=\"async\" class=\"v-cover ads-img\" src=\"https:\/\/tse1.mm.bing.net\/th?q=what%20is%20a%20calendar%20spread\" alt=\"Pin on Option Trading Strategies\" width=\"100%\" style=\"margin-right: 8px;margin-bottom: 8px;\" \/><figcaption>Pin on Option Trading Strategies from www.pinterest.com<\/figcaption><\/figure>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_61 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6594fd128a2d8\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6594fd128a2d8\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/w2.geleleger.nl\/rgnbs-what-is-a-calendar-spread-kmzye\/#Introduction\" title=\"Introduction\">Introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/w2.geleleger.nl\/rgnbs-what-is-a-calendar-spread-kmzye\/#How_Does_a_Calendar_Spread_Work\" title=\"How Does a Calendar Spread Work?\">How Does a Calendar Spread Work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/w2.geleleger.nl\/rgnbs-what-is-a-calendar-spread-kmzye\/#Benefits_of_a_Calendar_Spread\" title=\"Benefits of a Calendar Spread\">Benefits of a Calendar Spread<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/w2.geleleger.nl\/rgnbs-what-is-a-calendar-spread-kmzye\/#Question_and_Answer\" title=\"Question and Answer\">Question and Answer<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/w2.geleleger.nl\/rgnbs-what-is-a-calendar-spread-kmzye\/#Q_What_is_time_decay\" title=\"Q: What is time decay?\">Q: What is time decay?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/w2.geleleger.nl\/rgnbs-what-is-a-calendar-spread-kmzye\/#Q_What_is_the_difference_between_a_call_and_a_put_calendar_spread\" title=\"Q: What is the difference between a call and a put calendar spread?\">Q: What is the difference between a call and a put calendar spread?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/w2.geleleger.nl\/rgnbs-what-is-a-calendar-spread-kmzye\/#Risks_of_a_Calendar_Spread\" title=\"Risks of a Calendar Spread\">Risks of a Calendar Spread<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/w2.geleleger.nl\/rgnbs-what-is-a-calendar-spread-kmzye\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Introduction\"><\/span>Introduction<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A calendar spread is a popular options trading strategy that involves buying and selling options contracts with different expiration dates. Also known as a time spread or horizontal spread, a calendar spread is used to take advantage of the difference in time decay between two options contracts.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"How_Does_a_Calendar_Spread_Work\"><\/span>How Does a Calendar Spread Work?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>With a calendar spread, you buy a longer-term option with a later expiration date and sell a shorter-term option with an earlier expiration date. You profit from the difference in time decay between the two options contracts, as the longer-term option loses value more slowly than the shorter-term option.<\/p>\n<p>For example, let&#8217;s say you buy a call option on XYZ stock with an expiration date of six months from now and sell a call option on the same stock with an expiration date of one month from now. As time passes, the shorter-term option will lose value faster than the longer-term option, allowing you to profit from the difference in time decay.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Benefits_of_a_Calendar_Spread\"><\/span>Benefits of a Calendar Spread<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>One of the main benefits of a calendar spread is that it allows you to take advantage of time decay while limiting your risk. Because you are buying and selling options contracts at different expiration dates, your potential losses are capped at the difference in premiums between the two contracts.<\/p>\n<p>Another benefit of a calendar spread is that it can be used in both bullish and bearish market conditions. If you believe a stock will increase in value, you can use a call calendar spread, while if you believe a stock will decrease in value, you can use a put calendar spread.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Question_and_Answer\"><\/span>Question and Answer<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h3><span class=\"ez-toc-section\" id=\"Q_What_is_time_decay\"><\/span>Q: What is time decay?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A: Time decay is the gradual reduction in the value of an options contract as it approaches its expiration date. As time passes, the option becomes less valuable because there is less time for the underlying asset to move in the direction you predicted.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Q_What_is_the_difference_between_a_call_and_a_put_calendar_spread\"><\/span>Q: What is the difference between a call and a put calendar spread?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>A: A call calendar spread involves buying a call option with a later expiration date and selling a call option with an earlier expiration date. A put calendar spread involves buying a put option with a later expiration date and selling a put option with an earlier expiration date.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Risks_of_a_Calendar_Spread\"><\/span>Risks of a Calendar Spread<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Although a calendar spread can be a profitable options trading strategy, there are also risks involved. One of the main risks is that the underlying asset may not move in the direction you predicted, causing both options contracts to lose value.<\/p>\n<p>Another risk of a calendar spread is that it can be affected by changes in implied volatility. If the implied volatility of the underlying asset increases, the value of both options contracts may increase, causing you to lose money on the trade.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A calendar spread is a popular options trading strategy that involves buying and selling options contracts with different expiration dates. It allows you to take advantage of time decay while limiting your risk and can be used in both bullish and bearish market conditions. However, there are also risks involved, including changes in implied volatility and the potential for the underlying asset to move in the opposite direction of your prediction.<\/p>\n<\/article>\n<p><!--more--><\/p>\n<section>\n<aside><img decoding=\"async\" alt=\"Paper Calendars &amp; Planners Paper &amp; Party Supplies Calendar Spread Blush\" src=\"https:\/\/i2.wp.com\/tradersfly.com\/wp-content\/uploads\/2019\/06\/calendar-spread-options.0029-1024x576.jpg\" width=\"100%\" style=\"margin-right: 8px;margin-bottom: 8px;\" \/><small>Source: <i>hamaguri.co.jp<\/i><\/small><\/aside>\n<aside><img decoding=\"async\" alt=\"Pin on CALENDAR SPREADS OPTIONS\" src=\"https:\/\/i.pinimg.com\/originals\/da\/12\/86\/da12866021e982a4f332ae4923385737.jpg\" width=\"100%\" style=\"margin-right: 8px;margin-bottom: 8px;\" \/><small>Source: <i>www.pinterest.com<\/i><\/small><\/aside>\n<aside><img decoding=\"async\" alt=\"Glossary Definition Horizontal Call Calendar Spread Tackle Trading\" src=\"https:\/\/i2.wp.com\/tackletrading.com\/wp-content\/uploads\/2019\/03\/Glossary-Horizontal-Call-Calendar-Spread-example.jpeg\" width=\"100%\" style=\"margin-right: 8px;margin-bottom: 8px;\" \/><small>Source: <i>tackletrading.com<\/i><\/small><\/aside>\n<aside><img decoding=\"async\" alt=\"How Calendar Spreads Work (Best Explanation) projectoption\" src=\"https:\/\/i2.wp.com\/www.projectoption.com\/wp-content\/uploads\/2018\/04\/Screen-Shot-2018-04-10-at-3.14.05-PM-compressor.png\" width=\"100%\" style=\"margin-right: 8px;margin-bottom: 8px;\" \/><small>Source: <i>www.projectoption.com<\/i><\/small><\/aside>\n<aside><img decoding=\"async\" alt=\"Pin on Option Trading Strategies\" src=\"https:\/\/i.pinimg.com\/originals\/31\/63\/c3\/3163c3cac9a32ed2d6f8bf2a85b37ffa.jpg\" width=\"100%\" style=\"margin-right: 8px;margin-bottom: 8px;\" \/><small>Source: <i>www.pinterest.com<\/i><\/small><\/aside>\n<aside><img decoding=\"async\" alt=\"Pin on CALENDAR SPREADS OPTIONS\" src=\"https:\/\/i.pinimg.com\/originals\/fd\/07\/98\/fd07986206b9174d9b07ac62cec1abe7.jpg\" width=\"100%\" style=\"margin-right: 8px;margin-bottom: 8px;\" \/><small>Source: <i>www.pinterest.com<\/i><\/small><\/aside>\n<aside><img decoding=\"async\" alt=\"How To Trade Calendar Spreads The Complete Guide\" src=\"https:\/\/i2.wp.com\/s3.amazonaws.com\/optionalphafiles\/wp-content\/uploads\/2017\/01\/16151411\/Calendar_Spread.png\" width=\"100%\" style=\"margin-right: 8px;margin-bottom: 8px;\" \/><small>Source: <i>optionalpha.com<\/i><\/small><\/aside>\n<aside><img decoding=\"async\" alt=\"Calendar Spread Unofficed\" src=\"https:\/\/i2.wp.com\/unofficed.com\/wp-content\/uploads\/2020\/03\/Options-Strategy-Builder-1.png\" width=\"100%\" style=\"margin-right: 8px;margin-bottom: 8px;\" \/><small>Source: <i>unofficed.com<\/i><\/small><\/aside>\n<\/section>\n<!--CusAds0-->\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>Pin on Option Trading Strategies from www.pinterest.com Introduction A calendar spread is a popular options trading strategy that involves buying and selling options contracts with different expiration dates. Also known as a time spread or horizontal spread, a calendar spread is used to take advantage of the difference in time decay between two options contracts. &hellip;<\/p>\n","protected":false},"author":1,"featured_media":3640,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/w2.geleleger.nl\/wp-json\/wp\/v2\/posts\/250"}],"collection":[{"href":"https:\/\/w2.geleleger.nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/w2.geleleger.nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/w2.geleleger.nl\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/w2.geleleger.nl\/wp-json\/wp\/v2\/comments?post=250"}],"version-history":[{"count":0,"href":"https:\/\/w2.geleleger.nl\/wp-json\/wp\/v2\/posts\/250\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/w2.geleleger.nl\/wp-json\/wp\/v2\/media\/3640"}],"wp:attachment":[{"href":"https:\/\/w2.geleleger.nl\/wp-json\/wp\/v2\/media?parent=250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/w2.geleleger.nl\/wp-json\/wp\/v2\/categories?post=250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/w2.geleleger.nl\/wp-json\/wp\/v2\/tags?post=250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}